Quote:
Originally Posted by cougjunkie
Hyrum i see your point however most of the subprime lenders have been weeded out already. Or they have changed there guidelines drastically. Now we are seeing A paper lenders fold. You know the ones that lend money to borrowers with perfect credit.
The most defaulted loan last year was not the 580 credit score, 1 month out of a bk 100% loan. It was actually a 720 FICO self employed borrower.
How many on this board when they bought there first house or any house for that matter had 20% to put down?
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I wonder how many of those "self-employed" borrowers were employing themselves as real-estate speculators.
We had 20% to put down because we both worked full-time for several years (before and after our marriage), lived in a shitty basement apartment, saved our money, and bought a condo well within our means in a moderately priced market. How revolutionary of us.
I understand we're the best-case scenario, and for those who live in crazy home markets (e.g. California), have abnormal expenses (such as medical), etc., 20% is impossible, but, for a lot of the country's housing markets, it's not impossible to do it old-school.
Hey, if the 0% down, 5% interest-only loan is right for you, so be it. But I think, generally, the predatory lenders and stupid borrowers must shoulder equal amounts of blame.